GREEN CHEMISTRY & TOURISM PROMOTION

House Bills 4817 as enrolled

Public Act 271 of 2010

Sponsor:  Rep. Ellen Cogen Lipton

House Committee:  New Economy and Quality of Life

Senate Committee: Economic Development and Regulatory Reform

Complete to 1-26-11

A SUMMARY OF HOUSE BILL 4817 AS ENROLLED

The bill amended the Michigan Strategic Fund Act in the following ways.

(1) It places the definition of "green chemistry" in the MSF act and includes a firm that uses green chemistry as a design guidance under the definition of "research and development enterprise."  This would appear to make enterprises engaged in the development of "green chemistry" eligible for financial aid from the Research Center Fund.

The term "green chemistry" refers to chemistry and chemical engineering to design chemical products or processes that reduce or eliminate the use or generation of hazardous substances, while producing high-quality products, through safe and efficient manufacturing processes.  The definition also says that green chemistry is guided by 12 principles of green chemistry, and they are listed in the bills.

(2) It authorizes the spending of $10 million from the 21st Century Jobs Fund for the promotion of tourism, with at least $1.5 million to be used for the 2010-2011 "winter advertisement buy."  This authorization is for the 2010-11 fiscal year only.

MCL 125.2004 et al.

FISCAL IMPACT:

It is indeterminate what kind of fiscal impact placing the definition of "green chemistry" in the MSF act will have on the state of Michigan.  It is unclear how many enterprises will qualify for financial aid from the Research Center Fund.

House Bill 4817 also included a provision authorizing the expenditure of $10.0 million from the 21st Century Jobs Trust Fund for the promotion of tourism for fiscal year 2010-11 only.  This authorization will support the Michigan Promotion Program (Pure Michigan) for FY 2010-11.  In Public Act 191 of 2010, the FY 2010-11 general government appropriations act, the 21st Century Jobs Trust Fund received an appropriation authorization of $75.0 million.  This bill would require $10.0 million of that authorization to be spent on the Michigan Promotion Program.  Coupled with the $5.4 million line-item appropriation in PA 191 of 2010, the Michigan Promotion Program will receive a total of $15.4 million in FY 2010-11.  As stated above, $1.5 million of the $10.0 million must be spent on the "winter advertisement buy." 

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Ben Gielczyk

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.